“The UK economy is consistently flat-lining. The government is still failing to address the underlying problems limiting growth.

“Public spending is still far too high, with a tax burden to match. Government debt is growing at an alarming rate and we remain a highly regulated economy.

“Bold reform, rather than tinkering is needed or we will continue to keep facing the prospect of falling back into recession.

“With total borrowing at £106.5bn so far this financial year (around £4,000 per household), a £7.2bn increase on the same period in 2011/12, the government’s fiscal consolidation plan clearly has a long way to go.”

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The IEA is a registered educational charity and independent of all political parties.